Just this week I heard an American housing expert say that the most important thing to Buyers is the monthly mortgage payment, not the cost of the home in response to a questions about rising interest rates.

It got me thinking.  It's a tricky question as the 2 are definitely related so I ran a questionnaire in my IG stories & 2/3 of respondents agreed.

I agree too & here's why based on my experience.  When interest rates are low, Buyers realize that they're able to pay more (important in our multiple offer real estate world) without a big impact to their mortgage payment.  They are focused on that monthly figure more than the big one-the cost of the home.

When interest rates begin to rise, Buyers once again look to what that rising cost will do to their monthly payment, Because so many Buyers are stretched to their limit, expecially in large urban centres, that increase in payment could take Buyers out of the running.

So, yes, the major cost of a home is important but it's all about the regular mortgage payments for Buyers.

I spent part of the long weekend reading strata documents along with my clients.  We did this prior to viewing the property.

Why is it important to do this each time you consider buying a Strata property?

In this case we found the documents to be very revelatory & influenced our assessment of the property when we did see it,  & the subsequent decision not to move forward with an offer, even though there was lots to love in this home.

What important information is in those Strata documents?:

• the usual financial information which indicates how healthy the Strata is financially
• Depreciation Report as an asset management tool.  If they don't have 1 or something similar, it's a red flag as to how well the building is being maintained without that information
• Depreciation Report next steps-are they following recommendations or did they just tick off that box?
• The dynamics of the Strata.  Some have many rules & Bylaws, some have very few, & most fall in the middle.  What's your comfort level?  
• AGM's & SGM's say a lot about overall plans & spending & how current owners vote to support them
• Insurance deductibles can vary a lot & may add unexpected costs to Buyers
• What's the dynamic with the owners?  There can be a pattern of behaviour, unresolved issues, unwillingness or inability to support proper maintenance or...just the opposite in a well run & maintained building.

Real estate is expensive & not reading these documents could make it a lot more expensive down the road

In recent meetings with clients, they've told me about friends or people on social media who are talking about becoming a realtor or a mortgage brokers as a great way to make money.  Well, it is a job, but...

I'm not aware of any successful realtor who got into it "for the money."  We chose it as maybe like me, we always liked real estate.  I started getting interested at about 10 years old because my Dad was.  I even helped my parents find a house to buy when I was just 13!  Combine that interest with a love of problem solving, using my business experience to create mini product launches with every new listing, & a real interest in helping people find the right home has served both me & my clients very well.  I really love what I do & it shows.

When you get into a business, any business, for the wrong reasons, that shows too.  Clients may feel pressured to make decisions, may not get the attention that they deserve, may not get the expertise that they need, or that generally this  just doesn't feel right, leaving them frustrated & disappointed.

Real estate is actually about relationships.  I spend a majority of my time listening, not talking.

When you're looking for a realtor, look for one who got into it for the right reasons!

some Sellers think that in a Sellers' market, the home sells itself.  Well, it will sell but...

 I've yet to meet a Seller who doesn't want the best results.  That enables them to buy another home, maybe better than what they thought they could afford, or help their children get into real estate, or put more into the retirement fund.

Using a professional & experienced agent to sell your home & one that doesn't cut corners because "it's a Sellers' market" will always get the best results for a Seller.

What does experience bring to the deal?   Here are just a few:

• Knowledge-we know what Buyers want-we've listened to them.  It's helpful for preparing or showing your home
• easy tips to make your home look better
• relationships & trust with other agents built over time.  Negotiations will run more smoothly.
• professional photography & floorplans to make it easier for Buyers to see your home along with Social media
• neighbourhood & building knowledge-we've spent a lot of time in them!

It means we bring something extra to selling your home & getting the best possible price.  Experience counts!

Those January numbers arrived in my mailbox early this morning.

The total number of listed homes on MLS in Metro Vancouver is down 31.8% compared to January/21.  Of course each area of Metro is a little different & sales to listing ratio for single family homes is lower than townhomes which are highest.  Condos fall in the middle so it may be easier to find a home to buy than a townhouse, depending on where you live.

What might change in the next few months?

• interest rates are going up so some Buyers might not find it worthwhile to make a move now
• more sellers tend to think of a "spring" market & usually listings do begin to pick up beginning in March
• snowbirds, at least those that did head south this year, come back in the Spring.  If they have any plans to sell, they'll do it in the Spring.
• some of those Sellers sitting for months with unrealisting pricing will decide to be more flexible on price, at least they will if they truly want to sell.

There is hope for Buyers; we just have to be patient :)

to have a look at your mortgage interest rate.  We've been warned-interest rates will be going up.  What can you do about that?  

If you're a Buyer still searching for you new home, you can check with your bank or mortgage broker to find out how you can update your rate hold to secure the lowest rate for the longest period of time.  We know it takes a while to find a new home with the current low level of listings. Typically lenders hold rates for 60-90 days so find out how can you make the most of a rate hold.  

While you're speaking with your rep, you could also discuss fixed versus a variable mortgage.  What best suits your needs?  In today's Globe & Mail Business, Robert McLister wrote about the 2 mortgage products.

There are a lot of good reasons to go with a variable & the best one is that the variable wins over the next 5 years.

Always stay in touch with your mortgage rep.  They're busy so may not reach out to you, but most will be happy to discuss your needs, what you can expect in the next couple of months, & what can be done to secure the lowest possible rate.

Sellers often think of Spring & Fall markets as being the best time to sell their homes.  That used to be true!

Because there are now more factors driving real estate, the best time to sell is based on market conditions.  What are those?

Market conditions can be 1 or more of interest rates, supply vs demand, weather, school cutoff dates for registration, geographical location, & now of course, CoVid.

What seems to be universally true are a couple of these.  We don't have enough supply for the demand which has been the case for some time, interest rates will be going up sooner rather than later so the Buying dollar won't go as far, & CoVid has actually increased demand for homes now that we have to spend so much time in them.

All we know is what we know to be true now so interest rates haven't changed, there is huge demand for all types of homes, & listings are at an historic low.  Is there a better time to sell?

It's hard to avoid the subject of real estate, no matter where you live.  With so much information coming at you, it's overwhelming, especially if you've been away from it for a while or you're new to it..

Does it have to be?  Not really.

What's the trick?  A couple of helpful tools for Buyers & Sellers:

• Harder than it sounds but try to stay focussed.  It's NEED TO KNOW, not NICE TO KNOW. For example, if you're going to be listing your home, focus on the latest  news on your type of home & your neighbourhood, NOT others.
• establish a timeline-Buyers.  Have your agent walk you through the steps of Buying, starting from lender pre approval through making an offer to closing & possession.
• establish a timeline-Sellers.  You'll want to know the steps & timing from signing the listing contract through photography & floor plans to how showings & offers will be done.     

These are just a couple of ways that the stress & surprises of real estate can be reduced for Buyers & Sellers.  Knowledge gives you power over your situation,. & having an experienced & patient   agent on your side helps-a lot.

New Year, new Blog beginning week of January 10th